Articles about Carousel Fraud


Bloke gets six years in slammer after fessing up to £4.75m tax scam

A businessman from Essex, UK, has been jailed for six years for claiming back sales tax on computer memory sold overseas in a deception also known at carousel fraud. Robert Waterman funded a lavish lifestyle of expensive houses, luxury cars and a Marbella holiday home through a scam in which he pretended to trade memory sticks …

How the internet turned ram-raiders into sophisticated fraudsters

Opinion Fraud and theft has always been as much of a part of the technology channel scene as fast cars and bonus time excess. But it seems the shift to electronic communications has handed the bad guys a more subtle arsenal. If we look back over the years, it's clear your best defence is to refine your ability to detect when something …
Eddie Pacey, 16 Sep 2013
Pigeon crapping on statue

Tears, laughter and bankruptcy: How not to go bust

Feature Bankruptcy? You don't know whether to laugh or cry. It was a lunchtime tech awards ceremony in the West End many years ago. The trophies were polished, the golden envelopes were ready to be opened to gasps of joy and waiters were circulating with the canapes and fizz. Suddenly some rather large men in suits appeared among the …
Steve Bell, 30 May 2013

Hefty porridge for £300m VAT ring

Five members of a missing trader fraud gang have received sentences of up to four and a half years for a £17m scam based around mobile phones, HMRC revealed yesterday. The gang nobbled the revenue in a "complicated" fraud centred on mobile phones, SIM cards, memory and other mobile phone accessories. HMRC said paperwork …
Joe Fay, 03 Dec 2010
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VAT fraudster gets 9 years for refusing £40m bill

Emmanuel Hening, already serving the longest sentence ever secured against a VAT-fraudster, has seen another nine years added onto his sentence. A court last week added to his 15-year sentence because he has failed to repay £40m demanded by Her Majesty's Revenue and Customs. Vat fraudster Henning Hening, who has dual …
John Oates, 22 Nov 2010
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Carousel fraudsters must pay back £92m

Her Majesty's Revenue and Customs is demanding two convicted carousel fraudsters pay back £92m in cash, cars and properties or face an extra ten years in prison. The gang of 21 were sentenced to a total of 74 years in May. They ran a massive missing trader or carousel fraud importing computer chips from Ireland VAT-free and …
John Oates, 08 Jul 2010

Chips-for-gold fraud gang get 74 years' jail

A 21-strong gang of CPU-dealing VAT fraudsters have been sentenced to a total of 74 years in prison. Reporting restrictions on Operation Devout were lifted today following sentencing in the seventh and final trial related to the complex organised crime network. The gang were involved in importing CPUs, mainly from Ireland. …
The Register breaking news

Carbon trade phish scam disrupts exchanges

Phishing fraudsters have extended their net beyond harvesting e-banking credentials via a scam that resulted in the theft of 250,000 carbon permits worth over €3m. The outbreak of fraud resulted in the suspension of trading in several EU registries on 2 February. The crooks are thought to have created fake emission registries, …
John Leyden, 04 Feb 2010
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VAT Directive to change to end carousel fraud

The European Commission wants to amend the VAT Directive to help eradicate a kind of international VAT fraud that is estimated to have cost the UK exchequer up to £2 billion a year. Carousel fraud is a form of what is known as Missing Trader Intra-Community (MTIC) fraud, though the terms are sometimes used interchangeably. …
OUT-LAW.COM, 30 Sep 2009
The Register breaking news

Revenue U-turns on carousel carbon trading

Her Majesty's Revenue and Customs said that from midnight last night all trades in carbon credits will be VAT-free, because of fears that carousel fraudsters, who usually fraudulently exploit computer chips and mobile phones, will target the trade. Carousel fraud or Missing Trader Intra-Community fraud occurs when goods are …
John Oates, 31 Jul 2009

Revenue not scared of carbon trading fraud

Her Majesty's Revenue and Customs is not seeing a stampede of fraudsters hitting carbon trading as a new way to commit carousel fraud, or missing trader intra-community fraud. Classic MTIC fraud involves buying and apparently importing goods from another EC country, so no VAT is charged. These are then sold on, with VAT added …
John Oates, 20 Jul 2009
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UK extends VAT crackdown as EU OKs cut-rate cobblers

The EU has given the green light to the UK to extend its reverse charge VAT scheme aimed at cracking down on carousel fraud. The two year extension to the UK's efforts to claw back VAT on alleged dodgy mobile phone and computer chip deals came at a meeting of European finance ministers that also OK'd a raft of VAT changes to …
Joe Fay, 11 Mar 2009

EC to amend VAT Directive

The European Commission has proposed (pdf) a series of measures, including changes to the VAT Directive, to prevent and detect VAT fraud. The Commission today adopted a Communication (pdf) presenting a short-term action plan with a list of future legislative measures to enhance the capacity of tax administrations to prevent or …
OUT-LAW.COM, 02 Dec 2008

VAT fraudster must repay £26m

A convicted VAT fraudster has been ordered to pay Her Majesty's Revenue and Customs £26m or serve an extra ten years in prison. Craig Johnson is already serving 12-and-a-half years for his part in a missing trader or carousel fraud which defrauded the Revenue of £138m. The confiscation order means Johnson must cough up £8m …
John Oates, 24 Nov 2008

VAT fraudsters sentenced to total of 133 years

More than 20 people have been sentenced to a total of 133 years for their part in a series of major mobile phone carousel fraud conspiracies in the UK. Her Majesty’s Revenue and Customs (HMRC) said on Friday that its lawyers had concluded more than seven years of work on three interconnected carousel or “missing trader” VAT …
Kelly Fiveash, 29 Sep 2008
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EC tries to get on top of carousel fraud

The European Commission is proposing speeding up how VAT regulations work in order to reduce carousel fraud. Carousel fraud, or missing trader fraud, involves importing high value but VAT-free goods from another Community country. The goods are then sold on with VAT added, before the company disappears without paying HMRC the …
John Oates, 17 Mar 2008
EU flag

Huge VAT fraud tab eclipses EU's age-old scams

Carousel and VAT fraud is far outstripping Europeans' traditional financial fiddles on EU funds, prompting MEPs to call on the European Commission to overhaul its anti-fraud operation to combat the problem. MEPs yesterday voted to adopt an “own initiative” report on the commission’s 2005 and 2006 reports on its fight against …
Joe Fay, 20 Feb 2008
The Register breaking news

Fraud cases breached £1bn level in 2007

Organised gangs pushed the value of fraud to a 12-year high last year, with the UK government being the largest victim of their criminal activities, according to a new survey. KPMG Forensic, which has been monitoring fraud levels for 20 years, said today that the total value of cases heard by UK courts in 2007 - £1.02bn - was …
Kelly Fiveash, 04 Feb 2008

Preacher jailed for £51m carousel fraud

A lay preacher and law lecturer from Beeston has been jailed for six and a half years for defrauding the British taxpayer to the tune of £51m. 49-year-old Malcolm Edwards-Sayer, from Bramcote, admitted eight counts of conspiracy to cheat the Inland Revenue. The preacher was involved in a carousel fraud which for 18 months …
John Oates, 29 Nov 2007

Hynix leaves DRAM market spotless

Hynix, the Korean computer memory maker, is fleeing the DRAM spot market - because prices are too low. That's not the spin the company is putting on the decision, telling Reuters that it wants to "enhance our flexibility and strengthen our position in the contract market". This should make sense: according to market watcher …
Drew Cullen, 27 Sep 2007

Virtualisation all the rage but Peterborough's so real it's dangerous

There's no doubt about it, we're living in a virtualised world. Anyone disinclined to believe it only needed to look at VMWare's IPO, covered in entertaining detail by El Reg's Ashlee Vance. On the day, VMWare was planning to place 33 million shares at $29 each, netting $957m in the process and giving it a capitalisation of …
Billy MacInnes, 16 Aug 2007
Warning: roundabout

VAT fraudsters 'laughing all the way to their offshore tax haven'

Carousel fraud accounted for 87 per cent of the total fraud cases reported in the UK for the first half of 2007. According to research figures published by accounting firm BDO Stoy Hayward, there were 141 business frauds (reflecting a 42 per cent jump) over £50,000 in value at a cost of £538m, of which £468m was from major VAT …
Kelly Fiveash, 13 Aug 2007
Warning: roundabout

Carousel fraud jumps to record high

A significant number of carousel fraud cases worth more than £100,000 passed through English courts in the first six months of the year. KPMG Forensic, which monitors fraud figures, said there was a total of 107 fraud cases in the six months leading up to June this year, which had a total value of £594m. It said the dramatic …
Kelly Fiveash, 30 Jul 2007

It's a long way from Cupertino to Roswell, but we'll get there

For those of you who may have missed it, a Cupertino-based company called Apple launched a mobile phone in the US last Friday and sold an awful lot of them over the weekend. It would be hard to miss the iPhone, of course, because it seemed not a single story about mobile phones has gone by without a reference to it - at last …
Billy MacInnes, 05 Jul 2007

HMRC arrests 10 carousel fraud suspects

HM Revenue and Customs (HMRC) officers arrested 10 suspected multi-million pound "carousel" fraudsters last week in a nationwide swoop. It said arrests were made across the UK including in Birmingham, Slough, and Maidenhead, with 20 premises being searched in connection with a suspected missing trader intra community (MTIC), …
Kelly Fiveash, 02 Jul 2007

MP's son jailed over VAT scam

The son of Labour MP and millionaire businessman Mohammed Sarwar has been jailed for three years after being found guilty of an £850,000 VAT scam involving imported mobile phones. Athif Sarwar, 28, of Lynebank Place, Mearnskirk was handed the custodial sentence yesterday at the High Court in Glasgow. According to the BBC, …
Kelly Fiveash, 29 Jun 2007

Dell takes Cameron path to success as McCain likes bull for a China job

Dell is looking more and more like David Cameron's Tories. Like the Tories, Dell used to be popular but has recently been in the doldrums, and CEO Michael Dell is busy ripping up some of the direct seller's articles of faith (just like Dave and his recent pronouncements on grammar schools) to get back in everybody's good books …
Billy MacInnes, 07 Jun 2007

VAT 'reverse charge' scheme kicks off

As of today mobile phones and computer chips will be subject to a new fraud-busting VAT accounting scheme called "reverse charge". The new scheme has been introduced by Her Majesty's Revenue and Customs (HMRC) in a move to stamp out Missing Trader Intra-Community fraud (MTIC). MTIC, which is more often referred to as carousel …
Kelly Fiveash, 01 Jun 2007

'Brown should rethink EU proposal on VAT'

Gordon Brown has been warned that plans to simplify VAT rules will severely impair the European Union's ongoing battle against tax fraud. In a letter to the Prime Minister in-waiting the International VAT Association (IVA) has urged Brown to reconsider the "B2B" (business to business) proposal on Europe's escalating VAT fraud …
Kelly Fiveash, 31 May 2007
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MP's son guilty of VAT carousel fraud

The son of Labour MP Mohammed Sarwar has been convicted of an £850,000 money laundering scam involving imported mobile phones. The Glasgow High Court heard that Athif Sarwar, 28 of Lynebank Place, Mearnskirk had handled thousands of pounds of money described as "criminal property", the BBC reports. Sarwar was found guilty of …
Kelly Fiveash, 24 May 2007

HMRC gets new tool to battle VAT fraud

Computer chips and mobile phones will be subjected to a "reverse charge" VAT regime from June 1 this year in a bid to slash missing trader fraud. Her Majesty's Revenue and Customs (HMRC) said the reverse charge system should remove the ability "to steal VAT on business-to-business transactions", effectively preventing Missing …
Kelly Fiveash, 19 Mar 2007

Customs arrests 10 alleged VAT-fraudsters

Customs arrested 10 people this morning suspected of involvement in a £250m carousel fraud. The arrests were made as a result of Operation Euripus back in July 2003 - which saw 46 people arrested after raids on 93 addresses across Europe. As a result of that operation half a million pages of documents and 28 terabytes of …
John Oates, 06 Feb 2007

Carousel fraud costs UK £3bn

Missing trader or carousel fraud cost Her Majesty's Revenue and Customs £3bn in the last financial year. Figures from the Treasury reveal the size of the problem, although HMRC believes it is getting on top of the problem - helped by the closure of the First Bank of Curacao earlier this year. Customs estimates that attempted …
John Oates, 07 Dec 2006
The Register breaking news

VAT fraud claims seven more

Seven men have been imprisoned for a total of 16 years for their role in a £3.7m VAT fraud and related money-laundering offences. Three of the men would have faced private prosecution from Microsoft had Her Majesty's Revenue and Customs not got there first. The three were Alexander Bell of Walton-on-Thames, his brother Jonathan …
John Oates, 15 Nov 2006

'Carousel fraud' bank's founder held for three more months

Controversial Dutch mult-imillionaire businessman John Deuss, who was arrested last month after his offshore bank allegedly aided 2500 UK tax carousel fraudsters, is to be held in custody in the Netherlands for another 3 months. Prosecutor Hendrik-Jan Biemond, who also led the case against the Ahold accounting scandal, is still …
Jan Libbenga, 06 Nov 2006

£10m VAT fraud gang jailed

Four members of a carousel VAT fraud gang were found guilty by Canterbury Crown Court late last week. One gang member was sentenced to 10 years in prison while three other members got eight years each. The offences were committed in 2003 and involved supposed export of mobile phones to Kiev in the Ukraine. All four men are …
John Oates, 30 Oct 2006
hands waving dollar bills in the air

'Carousel' bank's founder due in court

John Deuss is due in court in Holland later today to face charges relating to the First Curacao International Bank (FCIB). Deuss, who founded the bank, was arrested by Dutch police on his arrival from Bermuda. Dutch and UK tax authorities took action against the bank in September. UK Customs accuse FCIB of being the favoured …
John Oates, 23 Oct 2006

Carousel fraud slows down again

Carousel or missing trader fraud has fallen for the second month in a row. Figures from the Office of National Statistics reveal that trade in goods associated with the fraud fell to £1.2bn in August compared with £1.5bn the month before. Her Majesty's Revenue and Customs (HMRC) has made the fraud a top priority, which has …
John Oates, 11 Oct 2006
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Customs jumps on carousel fraudsters' favourite bank

Her Majesty's Revenue and Customs (HMRC) is claiming a major victory over carousel fraudsters after discovering they were all using the same bank. Every fraudster who had his collar felt in the last two years for carousel fraud had an account with the First Curacao International Bank (FCIB). The Caribbean bank was shut down …
John Oates, 22 Sep 2006
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Seventeen charged for carousel fraud

Seventeen people are being charged in connection with VAT fraud following the raid of 60 addresses in London, Manchester, and Glasgow on Tuesday. The raids involved 400 customs officers backed up by 100 police officers. All those charged are from Strathclyde. They have been charged under Scottish law and their cases passed …
John Oates, 17 Aug 2006
For Sale sign detail

Revenue pinches 22 in VAT fraud raids

Twenty-two people are in custody today after the Revenue's biggest operation against carousel fraud. Early this morning more than 400 investigators from Her Majesty's Revenue and Customs, backed by 100 police officers, used 60 search warrants at business and residential addresses across the country. Police officers from Greater …
John Oates, 15 Aug 2006

Computing VAT regime will be turned on its head, says EU Commissioner

VAT on mobile phones, computer chips and other digital goods will not be charged between businesses under new rules about to be approved in Europe. Tax commissioner Laszlo Kovacs has said the plan will be approved in the next two weeks. The plan is designed to combat a crime dubbed 'carousel fraud'. Criminals have been moving …
OUT-LAW.COM, 14 Jul 2006

VAT fraudster gets six years

A man was jailed for six years on Friday for his part in VAT-avoiding carousel fraud. Mark Selby pleaded guilty to missing trader offences between May 2002 and May 2003. During that time Selby's company sold mobile phones worth £326.5m to 12 UK companies. He also sold phones to Spanish companies which supplied the same 12 UK …
John Oates, 19 Jun 2006

EC backs UK tax man on VAT fraud

The European Commission has strengthened HMRC’s hand against VAT fraudsters by backing a “reverse charge mechanism” for VAT payments. The backing for the reverse charge approach was announced as part of a “coherent European strategy” announced by Brussels yesterday. A reverse charge system would mean VAT is accounted for only …
Joe Fay, 01 Jun 2006

UK Customs denies pressing banks to pull out of mobile sector

"We have chosen to end the banking relationship between your company and HSBC." With these words, over 150 mobile phone dealers in the UK have suddenly found themselves treated as money-launderers - and HM Revenue and Customs is said to be behind it. Some dealers say the Revenue is instructing banks to dump its mobile customers …
Guy Kewney, 07 Dec 2005

Four found guilty of £40m VAT fraud

Four people were found guilty at Maidstone Crown Court on Friday of involvement in a “carousel” VAT fraud that is estimated to have cost HM Revenue & Customs (HMRC) over £40 million over two years. The four – Stephen Michael Pigott from Dubai, Stacey Haber-Hofberg from Hampshire, Joanna Cynthia Harris of London and Theresa …
OUT-LAW.COM, 17 Aug 2005
fingers pointing at man

Judge slates Customs in £120m VAT fraud case

HM Revenue and Customs insisted today that it would press on with its attempts to crack down on VAT fraud after a judge’s withering criticism of its handling of one prosecution. Five Manchester-based businessmen accused of a £120m VAT fraud centring on imported mobile phones were freed last month, after Mr Justice Crane stayed …
Joe Fay, 24 Jun 2005

Jury clears businessman in VAT fraud case

An Irish businessman walked free last week after a UK court found him not guilty of multi-million pound VAT offences. Dylan Creaven, 31, of Kensington, London, was accused of defrauding HM Customs and Excise of £14m. He was originally arrested in late 2002 and accused of fraud totalling £162m. Charges were later reduced to two …
John Oates, 23 May 2005
The Register breaking news

PC-dumping ex-prosecutor mired in teen porn scandal

A former Dutch prosecutor, who resigned last year after it emerged he had chucked his old PC out with the trash is in trouble again. The PC, which contained hundreds of pages of confidential information about high-profile cases, as well as former Dutch prosecutor Joost Tonino's social security number and personal tax files, …
Jan Libbenga, 06 May 2005

Dutch Customs exposes UK chip carousel fraud

Fraud investigators of the Dutch Economic Inspection Service of the Fiscal Intelligence and Investigation Service (FIOD) have discovered a large carousel fraud with 2,000 PC components destined for the UK at Schiphol Airport. The seized component were exported to the US from the UK and would be re-introduced to the UK via the …
Jan Libbenga, 05 May 2005